should i consolidate?

mambo69

At the moment I only owe 45k on a house worth 115k, but also owe around 15k on 2 cards and a loan


at the moment financially i can cope, but I was wondering if its worth sticking it all into one pot?

I pay around £870 per month to cover the lot, but a 60k mortgage over 14 years would be around £480 on a 3 year fix, thus giving me nearly £400 per month, that i would want to save to cover a holiday in a few years time,


can you still get these agree, I earn 29k per annum so am asking for just over 2 x salary, and it would mean i only have 1 debt to service not 4

Soundgirlrocks

I think the general advice is consolidating is a bad thing as in the long run you could end up paying a lot more over the period of the morgage

TrickyDicky101

Presumably the reduction in monthly payment results principally from an increase in the term over which you will be repaying the borrowed amounts (a relatively small proportion will result from presumably a lower interest rate on the mortgage vs interest rate on these other debts). Increasing the term by transferring the debts to the mortgage thus means you will pay more interest in total because you will have the debt for longer.

If you consolidate the debts you will not "save" £400 per month - you will merely be delaying repayment of your debts by £400 per month. You need to decide if you are happy to do this.

Thrugelmir

You may find your existing lender unwilling to consolidate debt. As they make more money by lending at unsecured interest rates.